Financial crimes - 'Bad guys don't respect jurisdictions'

Published: Sunday, May 5, 2013 at 8:46 p.m.

Last Modified: Sunday, May 5, 2013 at 8:46 p.m.

"Bad guys don't respect jurisdictions," said District Attorney Ben David, "so displacing crime from one area to another doesn't solve the problem."

David was speaking in reference to the launch of a statewide Financial Crime Initiative by the N.C. Conference of District Attorneys. David is president of the organization, which represents the 44 elected DAs in the state.

The group formed the financial crimes unit in November, with the hiring of Tammy J. Smith as the white-collar crimes resource prosecutor in charge of four regions in the state. Smith is a Campbell University law school graduate with more than 12 years of experience.

In early April, the conference announced the hiring of three more senior prosecutors to fill the regional positions, with one more hiring scheduled shortly. The team will work with district attorneys across the state, as well as the state Attorney General's Office.

"Violent crimes and career criminals are our primary focus," David said. "In some cases, financial crimes have been underserved.

"It can be hard to prioritize (financial crimes) when you are focused on rape, murder and armed robbery," he added.

David said he and his fellow DAs asked themselves, "What if we go after large-scale hubs of financial crime with a regional or statewide approach?"

The group decided that a team of career prosecutors and staffers could provide the necessary expertise to investigate complex financial crimes, such as mortgage fraud, embezzlement and identify theft.

The initiative was launched with $6.7 million that state Attorney General Roy Cooper set aside from the state's $338 million share of a national $25 billion settlement with five major banks over mortgages – the largest in U.S. history.

"The national settlement provides a unique opportunity for district attorneys across the state to address financial crimes that affect our citizens, the business community, and the state at large," David said in a statement announcing the initiative.

"If you embezzle $100,000 from a business, a class C felony, you're going to go to jail," David promised.

But what do you do about credit card fraud where the amounts are typically much lower, he asked. "If someone uses your credit card for a $2,500 charge in Aruba, you are protected and the banks typically write the amount off," he continued. "Who screams when a quarter million people are robbed at the same time? We need to be going after that guy."

The Financial Crimes Initiative is part of the Blueprint for a Safer North Carolina, developed by the Conference of District Attorneys, according to David. The initiative addresses two key elements of the blueprint, targeting elder abuse and financial/identity theft, and prosecuting complex crimes on both local and regional levels.

David is especially concerned with elder abuse and hosted a seminar in Wilmington in early April for the Conference of District Attorneys that focused solely on the topic. "Seniors typically have more resources, which make them a target," he said. "Only one in 17 cases of elder financial abuse gets reported. With a graying population, it's a growing problem. This demographic needs our help."

<p>"Bad guys don't respect jurisdictions," said District Attorney <a href="http://www.starnewsonline.com/section/topic80"><b>Ben David</b></a>, "so displacing crime from one area to another doesn't solve the problem." </p><p>David was speaking in reference to the launch of a statewide Financial Crime Initiative by the N.C. Conference of District Attorneys. David is president of the organization, which represents the 44 elected DAs in the state.</p><p>The group formed the financial crimes unit in November, with the hiring of Tammy J. Smith as the white-collar crimes resource prosecutor in charge of four regions in the state. Smith is a Campbell University law school graduate with more than 12 years of experience. </p><p>In early April, the conference announced the hiring of three more senior prosecutors to fill the regional positions, with one more hiring scheduled shortly. The team will work with district attorneys across the state, as well as the state Attorney General's Office.</p><p>"Violent crimes and career criminals are our primary focus," David said. "In some cases, financial crimes have been underserved. </p><p>"It can be hard to prioritize (financial crimes) when you are focused on rape, murder and armed robbery," he added.</p><p>David said he and his fellow DAs asked themselves, "What if we go after large-scale hubs of financial crime with a regional or statewide approach?" </p><p>The group decided that a team of career prosecutors and staffers could provide the necessary expertise to investigate complex financial crimes, such as mortgage fraud, embezzlement and identify theft.</p><p>The initiative was launched with $6.7 million that state Attorney General Roy Cooper set aside from the state's $338 million share of a national $25 billion settlement with five major banks over mortgages – the largest in U.S. history.</p><p>"The national settlement provides a unique opportunity for district attorneys across the state to address financial crimes that affect our citizens, the business community, and the state at large," David said in a statement announcing the initiative. </p><p>"If you embezzle $100,000 from a business, a class C felony, you're going to go to jail," David promised. </p><p>But what do you do about credit card fraud where the amounts are typically much lower, he asked. "If someone uses your credit card for a $2,500 charge in Aruba, you are protected and the banks typically write the amount off," he continued. "Who screams when a quarter million people are robbed at the same time? We need to be going after that guy."</p><p>The Financial Crimes Initiative is part of the Blueprint for a Safer North Carolina, developed by the Conference of District Attorneys, according to David. The initiative addresses two key elements of the blueprint, targeting elder abuse and financial/identity theft, and prosecuting complex crimes on both local and regional levels. </p><p>David is especially concerned with elder abuse and hosted a seminar in Wilmington in early April for the Conference of District Attorneys that focused solely on the topic. "Seniors typically have more resources, which make them a target," he said. "Only one in 17 cases of elder financial abuse gets reported. With a graying population, it's a growing problem. This demographic needs our help." </p><p></p><p>Metro desk: 343-2389</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>.com: @StarNewsOnline</p>